Recognition of Bearer Plants under Biological Asset or PPE

Abstract

Flora Exotics (Private) Limited (“Company”) is a limited liability company incorporated and domiciled in Sri Lanka. The principal activity of the company is to grow and export horticultural products engendered from tissues of exotic plants. The company is operating under Plantation sector. It was observed and understood that the company is not recognizing their mother plants in the financial statements which are the most valuable asset that generate the future economic benefits to the company. Therefore this case study elaborates how these mother plants should be recognized in the financial statements.